Share repurchases and dividends totaled $783 million; repurchased 5.2 million shares during the fourth quarter or approximately 1.3% of the shares outstanding on October 1, 2016

Comparisons with the prior quarter, fourth quarter 2015 and full year 2015 are available in the following table:

Table 1 - Earnings Summary

Three Months Ended

Year Ended

Millions of U.S. dollars

December 31,

September 30,

December 31,

December 31,

December 31,

(except share data)

2016

2016

2015

2016

2015

Sales and other operating revenues

$7,747

$7,365

$7,071

$29,183

$32,735

Net income(a)

763

953

795

3,837

4,474

Income from continuing operations(b)

770

955

797

3,847

4,479

Diluted earnings per share (U.S. dollars):

Net income(c)

1.87

2.30

1.78

9.13

9.59

Income from continuing operations(b)

1.89

2.31

1.78

9.15

9.60

Diluted share count (millions)

407

414

446

420

466

EBITDA(d)

1,406

1,606

1,394

6,602

7,533

Excluding LCM Impact:

LCM charges, pre-tax

29

- -

284

29

548

Income from continuing operations

788

955

982

3,865

4,830

Diluted earnings per share (U.S. dollars):

Income from continuing operations

1.94

2.31

2.20

9.20

10.35

EBITDA

1,435

1,606

1,678

6,631

8,081

(a) Includes net loss attributable to non-controlling interests and income (loss) from discontinued operations, net of tax. See Table 10.

(b) See Table 11 for charges and benefits to income from continuing operations.

(c) Includes diluted earnings per share attributable to discontinued operations.

(d) See the end of this release for an explanation of the Company's use of EBITDA and Table 8 for reconciliations of EBITDA to net income and income from continuing operations.

1 LCM stands for "lower of cost or market." An explanation of LCM and why we have excluded it from our financial information in this press release can be found at the end of this press release under "Information Related to Financial Measures."

LyondellBasell Industries (NYSE: LYB) today announced earnings from continuing operations for the fourth quarter 2016 of $770 million, or $1.89 per share. Fourth quarter 2016 EBITDA was $1.4 billion. The quarter included a $29 million non-cash, pre-tax charge for the impact of a lower of cost or market (LCM) inventory adjustment ($18 million after-tax). Excluding the LCM adjustment, earnings from continuing operations during the fourth quarter totaled $788 million, or $1.94 per share, and EBITDA was $1.4 billion. The fourth quarter also included a $58 million lump sum pension settlement and a $61 million non-cash, out-of-period cumulative correction. The correction, which was not material to any reporting period, relates to taxes on our cross-currency swaps for 2014, 2015 and through the third quarter of 2016. Together, the pension settlement and the non-cash, out-of-period correction adversely impacted fourth quarter earnings by $0.24 per share. Full year 2016 income from continuing operations was $3.8 billion, or $9.15 per share, and EBITDA was $6.6 billion. The full year included a non-cash, pre-tax LCM inventory adjustment of $29 million ($18 million after tax). Excluding the LCM adjustment, earnings from continuing operations for the full year totaled $3.9 billion, or $9.20 per share, and EBITDA was $6.6 billion. 2016 earnings were negatively impacted due to the $58 million pension settlement, a $74 million non-cash, out-of-period cumulative correction relating to 2014 and 2015 for taxes on our cross currency swaps and positively impacted by an after tax gain of $78 million on the sale of our Argentine wholly owned subsidiary, Petroken Petroquímica Ensenada S.A. (Petroken). Combined, the net effect of the pension settlement, non-cash, out-of-period tax correction and Petroken gain adversely impacted full year 2016 earnings by $0.07 per share.

"LyondellBasell posted good results for 2016 despite the impact of our heavy planned maintenance schedule and several Refining operational upsets. Our continued strong earnings and cash flow enabled us to return cash to shareholders by increasing our dividend per share by 9 percent and purchasing 8 percent of the outstanding shares. Our Olefins and Polyolefins - Europe, Asia and International and Technology segments posted their second consecutive year of record results, demonstrating continued global industry strength. Overall, the global olefins and polyolefins industry benefitted from continued favorable supply and demand balances while low crude oil and fuel prices adversely impacted refining and oxyfuel margins. During the fourth quarter, we completed the final step in our 2 billion pound North American ethylene expansion program, began site preparation for a 1.1 billion pound polyethylene plant, and advanced our new propylene oxide plant design. These projects coupled with the 2016 completion of seven major plant maintenance turnarounds, including four cracker turnarounds, position our company favorably for the coming years," said Bob Patel, LyondellBasell chief executive officer.

OUTLOOK"During the past several months, the industry outlook for 2017 has steadily improved. Healthy U.S. and global economic activity and ethylene project delays have led to an improved forecast for industry supply and demand dynamics. Global supply positions have provided optimism regarding crude oil prices and NGL supply. While we will continue to watch these developments, the significant investments in our 2016 maintenance programs favorably position the company for 2017," Patel said.

Three months ended December 31, 2016 versus three months ended September 30, 2016– EBITDA decreased $90 million versus the third quarter 2016, excluding an unfavorable $29 million quarter to quarter variance as a result of the fourth quarter LCM inventory adjustment. The fourth quarter segment results were adversely impacted by $23 million due to the pension settlement. Compared to the prior period, olefins results decreased approximately $80 million. This decrease was driven by margins which declined approximately 6 cents per pound due to lower ethylene prices and increased feedstock costs. Volumes improved as a result of the completion of planned maintenance at the Morris, Illinois complex. Combined polyolefins results increased by approximately $10 million. Polyethylene price spreads over ethylene improved approximately 2 cents per pound partially offset by a 2 percent volume decrease. Polypropylene volumes declined due to seasonal demand while price spreads over propylene improved approximately 4 cents per pound. Joint venture equity income declined by $7 million.

Three months ended December 31, 2016 versus three months ended December 31, 2015– EBITDA decreased $242 million versus the fourth quarter 2015, excluding a favorable $30 million quarter to quarter variance as a result of the LCM inventory adjustments. 2016 results were negatively impacted by $23 million due to the pension settlement. Olefins results declined approximately $70 million versus the fourth quarter 2015. Ethylene margins were lower and production was down 9% primarily due to scheduled maintenance. Combined polyolefins results decreased approximately $150 million versus the very strong prior year period. Polyethylene spreads declined by approximately 6 cents per pound and volume decreased by approximately 6 percent. Polypropylene spreads declined by approximately 3 cents per pound. Joint venture equity income declined by $10 million.

Full year ended December 31, 2016 versus full year ended December 31, 2015– EBITDA decreased $915 million versus 2015, excluding a favorable $131 million year to year variance as a result of the LCM inventory adjustments in both years. 2016 results include a $57 million gain on the sale of the Petroken polypropylene business and the $23 million negative impact due to the pension settlement. Olefins results declined by approximately $850 million from the prior year. Ethylene margins declined by approximately 6 cents per pound versus 2015. The impact of 2 cents per pound lower ethylene sales price was compounded by a higher cost of ethylene production. Production was approximately 13 percent lower primarily as a result of 2016 scheduled plant maintenance. Combined polyolefins results decreased approximately $120 million versus the prior year. Polyethylene spreads over ethylene declined approximately 4 cents per pound and volume decreased approximately 4 percent. Polypropylene spreads improved by approximately 4 cents per pound. Polypropylene sales volumes were lower due to the sale of our Petroken subsidiary. Joint venture equity income increased by $17 million versus the prior year.

Three months ended December 31, 2016 versus three months ended September 30, 2016– EBITDA decreased $186 million for the fourth quarter versus the third quarter 2016. The fourth quarter was negatively impacted by a pension settlement of $8 million and the absence of an $11 million third quarter gain due to the restructuring of Asian polypropylene joint ventures and the sale of idled Australian polypropylene assets. Compared to the prior period, olefins results decreased approximately $120 million. Ethylene margins declined 7 cents per pound primarily due to feedstock costs. Ethylene sales and internal consumption were also lower due to planned maintenance at our Wesseling, Germany cracker. Combined polyolefins results declined by approximately $50 million primarily due to lower spreads for both polyethylene and polypropylene. Joint venture equity income increased by $3 million.

Three months ended December 31, 2016 versus three months ended December 31, 2015– EBITDA decreased by $53 million versus the fourth quarter 2015, excluding a favorable $24 million quarter to quarter variance as a result of the 2015 LCM inventory adjustment. The fourth quarter 2016 was adversely impacted by the $8 million pension settlement. Compared to the prior period, olefins results were relatively unchanged. Combined polyolefins results decreased approximately $50 million. Polyethylene spreads declined while polypropylene margins were relatively unchanged. Sales volume declined 4 percent and 10 percent for polyethylene and polypropylene, respectively. Joint venture equity income increased by $2 million.

Full year ended December 31, 2016 versus full year ended December 31, 2015– The segment achieved record EBITDA for the year. EBITDA increased $212 million versus 2015, excluding a favorable $30 million year to year variance as a result of the 2015 LCM inventory adjustment. 2016 results include gains totaling $32 million due to the sale of the Petroken polypropylene business, restructuring of Asian polypropylene joint ventures and the sale of idled Australian polypropylene assets. Olefins results declined by approximately $20 million. Combined polyolefins results increased approximately $180 million compared to the prior year driven by a polyethylene and polypropylene spread improvement of approximately 2 cents per pound and 3 cents per pound, respectively. Joint venture equity income increased by $19 million.

Three months ended December 31, 2016 versus three months ended September 30, 2016– EBITDA increased $2 million. The fourth quarter was negatively impacted by a pension settlement of $16 million. PO and derivatives and intermediate chemicals results increased by approximately $50 million primarily due to improved methanol and ethylene glycol margins and reduced maintenance while PO and derivatives were relatively steady. Oxyfuels results decreased approximately $20 million due to lower seasonal margins and volumes. Joint venture equity income was relatively unchanged.

Three months ended December 31, 2016 versus three months ended December 31, 2015– EBITDA increased $20 million versus the fourth quarter 2015, excluding a favorable $74 million quarter to quarter variance as a result of a LCM inventory adjustment in 2015. 2016 results were adversely impacted by the $16 million pension settlement. Results for PO and derivatives and intermediate chemicals improved by approximately $20 million primarily due to increased styrene and acetyls results. Oxyfuels improved approximately $10 million. Joint venture equity income was relatively unchanged.

Full year ended December 31, 2016 versus full year ended December 31, 2015– EBITDA decreased $323 million versus 2015, excluding a favorable $181 million year to year variance as a result of LCM inventory adjustments. 2016 results were negatively impacted by the $16 million pension settlement. PO and derivatives and intermediate chemicals results decreased approximately $200 million primarily due to lower margins for methanol, ethylene glycol and PO derivatives, as well as the PO sales mix. Oxyfuels results declined by approximately $90 million due to lower 2016 margins. Joint venture equity income declined by $8 million.

Refining – The primary products of this segment include gasoline and distillates, including diesel fuel, heating oil and jet fuel.

Table 5 - Refining Financial Overview

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

Millions of U.S. dollars

2016

2016

2015

2016

2015

Operating income (loss)

$40

($56)

($101)

($99)

$144

EBITDA

81

(10)

(59)

72

342

LCM charges, pre-tax

- -

- -

127

- -

177

EBITDA excluding LCM adjustments

81

(10)

68

72

519

Three months ended December 31, 2016 versus three months ended September 30, 2016– EBITDA increased $91 million versus the third quarter 2015. Underlying operational improvements provided approximately half of the increase while the consumption of low priced crude inventory from the prior year provided the balance. The Houston refinery operated at 228,000 barrels per day, up 19,000 barrels per day from the prior quarter. The Maya 2-1-1 industry benchmark spread was relatively unchanged, averaging approximately $19 per barrel.

Three months ended December 31, 2016 versus three months ended December 31, 2015– EBITDA increased $13 million versus the fourth quarter 2015, excluding a favorable $127 million quarter to quarter variance as a result of a 2015 LCM inventory adjustment. Fourth quarter 2016 throughput increased by 22,000 barrels per day from the prior year period. The Maya 2-1-1 industry benchmark spread increased by $0.45 per barrel, averaging $19 per barrel. Both operating periods were adversely impacted by operating issues.

Full year ended December 31, 2016 versus full year ended December 31, 2015– EBITDA decreased $447 million versus 2015, excluding a favorable $177 million year to year variance as a result of 2015 LCM inventory adjustments. Throughput at the Houston Refinery averaged 201,000 barrels per day, down 37,000 barrels per day. The Maya 2-1-1 industry benchmark spread decreased by approximately $3 per barrel, averaging approximately $19 per barrel. The cost of RINs was approximately $30 million higher in 2016 versus the prior year.

Full year ended December 31, 2016 versus full year ended December 31, 2015– Record results as EBITDA increased by $19 million, primarily due to improved catalyst results.

Capital Spending and Cash BalancesCapital expenditures, including growth projects, maintenance turnarounds, catalyst and information technology-related expenditures, were $567 million during the fourth quarter 2016 and $2.2 billion for the full year 2016. Our cash and liquid investment balance was $2.4 billion at December 31, 2016. We repurchased 5.2 million ordinary shares during the fourth quarter 2016 and 36.6 million shares during 2016. There were 404 million common shares outstanding as of December 31, 2016. The company paid dividends of $1.4 billion during 2016.

CONFERENCE CALLLyondellBasell will host a conference call February 3 at 11 a.m. ET. Participants on the call will include Chief Executive Officer Bob Patel, Executive Vice President and Chief Financial Officer Thomas Aebischer and Vice President of Investor Relations Doug Pike.

The toll-free dial-in number in the U.S. is 888-677-1826. A complete listing of toll-free numbers by country is available at www.lyb.com/teleconference for international callers. The pass code for all numbers is 6934553.

A replay of the call will be available from 2 p.m. ETFebruary 3 until March 4 at 12:59 a.m. ET. The replay dial-in numbers are 866-467-2412 (U.S.) and +1 203-369-1448 (international). The pass code for each is 2526.

ABOUT LYONDELLBASELLLyondellBasell (NYSE: LYB) is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell (www.lyb.com) products and technologies are used to make items that improve the quality of life for people around the world including packaging, electronics, automotive parts, home furnishings, construction materials and biofuels.

FORWARD-LOOKING STATEMENTSThe statements in this release and the related teleconference relating to matters that are not historical facts are forward-looking statements. These forward-looking statements are based upon assumptions of management which are believed to be reasonable at the time made and are subject to significant risks and uncertainties. Actual results could differ materially based on factors including, but not limited to, the business cyclicality of the chemical, polymers and refining industries; the availability, cost and price volatility of raw materials and utilities, particularly the cost of oil, natural gas, and associated natural gas liquids; competitive product and pricing pressures; labor conditions; our ability to attract and retain key personnel; operating interruptions (including leaks, explosions, fires, weather-related incidents, mechanical failure, unscheduled downtime, supplier disruptions, labor shortages, strikes, work stoppages or other labor difficulties, transportation interruptions, spills and releases and other environmental risks); the supply/demand balances for our and our joint ventures' products, and the related effects of industry production capacities and operating rates; our ability to achieve expected cost savings and other synergies; our ability to successfully execute projects and growth strategies; legal and environmental proceedings; tax rulings, consequences or proceedings; technological developments, and our ability to develop new products and process technologies; potential governmental regulatory actions; political unrest and terrorist acts; risks and uncertainties posed by international operations, including foreign currency fluctuations; and our ability to comply with debt covenants and service our debt. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2015, which can be found at www.lyb.com on the Investor Relations page and on the Securities and Exchange Commission's website at www.sec.gov.

INFORMATION RELATED TO FINANCIAL MEASURESThis release makes reference to certain "non-GAAP" financial measures as defined in Regulation G of the U.S. Securities Exchange Act of 1934, as amended. The non-GAAP measures we have presented include income from continuing operations excluding LCM, diluted earnings per share excluding LCM, EBITDA and EBITDA excluding LCM. LCM stands for "lower of cost or market," which is an accounting rule consistent with GAAP related to the valuation of inventory. Our inventories are stated at the lower of cost or market. Cost is determined using the last-in, first-out ("LIFO") inventory valuation methodology, which means that the most recently incurred costs are charged to cost of sales and inventories are valued at the earliest acquisition costs. Market is determined based on an assessment of the current estimated replacement cost and selling price of the inventory. In periods where the market price of our inventory declines substantially, cost values of inventory may be higher than the market value, which results in us writing down the value of inventory to market value in accordance with the LCM rule, consistent with GAAP. This adjustment is related to our use of LIFO accounting and the recent decline in pricing for many of our raw material and finished goods inventories. We report our financial results in accordance with U.S. generally accepted accounting principles, but believe that certain non-GAAP financial measures, such as EBITDA and earnings and EBITDA excluding LCM, provide useful supplemental information to investors regarding the underlying business trends and performance of the company's ongoing operations and are useful for period-over-period comparisons of such operations. Non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the financial measures prepared in accordance with GAAP.

EBITDA, as presented herein, may not be comparable to a similarly titled measure reported by other companies due to differences in the way the measure is calculated. We calculate EBITDA as income from continuing operations plus interest expense (net), provision for (benefit from) income taxes, and depreciation & amortization. EBITDA should not be considered an alternative to profit or operating profit for any period as an indicator of our performance, or as an alternative to operating cash flows as a measure of our liquidity. We have also presented financial information herein exclusive of adjustments for LCM.

Quantitative reconciliations of EBITDA to net income, the most comparable GAAP measure, are provided in Table 8 at the end of this release.

OTHER FINANCIAL MEASURE PRESENTATION NOTESThis release contains time sensitive information that is accurate only as of the time hereof. Information contained in this release is unaudited and subject to change. LyondellBasell undertakes no obligation to update the information presented herein except to the extent required by law.

EBITDA as presented herein includes the impacts of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. EBITDA for the second quarter of 2015 includes a pre-tax LCM benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment. EBITDA for the first quarter of 2016 includes pre-tax LCM adjustments of $68 million and a $78 million pre-tax gain on the sale of our wholly owned Argentine subsidiary, respectively. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. Fourth quarter 2016 EBITDA also included a pre-tax LCM adjustment of $29 million. See Tables 2 through 6 for LCM adjustments recorded for each segment.

(b)

See Table 8 for EBITDA calculation.

Table 8 - EBITDA Calculation

2015

2016

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

Total

Net income(a)

$

1,164

$

1,329

$

1,186

$

795

$

4,474

$

1,030

$

1,091

$

953

$

763

$

3,837

(Income) loss from discontinued operations, net of tax

3

(3)

3

2

5

- -

1

2

7

10

Income from continuing operations(a)

1,167

1,326

1,189

797

4,479

1,030

1,092

955

770

3,847

Provision for income taxes

440

541

487

262

1,730

432

346

326

282

1,386

Depreciation and amortization

287

247

248

265

1,047

268

266

257

273

1,064

Interest expense, net

58

72

77

70

277

77

79

68

81

305

EBITDA(b)

$

1,952

$

2,186

$

2,001

$

1,394

$

7,533

$

1,807

$

1,783

$

1,606

$

1,406

$

6,602

(a)

Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. The second quarter of 2015 includes an after-tax benefit of $6 million for the partial reversal of the first quarter 2015 LCM adjustment resulting from price recoveries during the period. The first quarter of 2016 includes an after-tax LCM charge of $47 million and a $78 million after-tax gain related to the sale of our wholly owned Argentine subsidiary. The second quarter of 2016 includes an after-tax benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period. The fourth quarter of 2016 also includes an $18 million after tax LCM charge.

(b)

EBITDA as presented herein includes the impact of pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. EBITDA for the second quarter of 2015 includes a pre-tax LCM benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment. The first quarter of 2016 includes a pre-tax LCM charge of $68 million and a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment. The fourth quarter of 2016 also includes a $29 million pre-tax LCM charge.

Table 9 - Selected Segment Operating Information

2015

2016

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

Total

Olefins and Polyolefins - Americas

Volumes (million pounds)

Ethylene produced

2,364

2,415

2,514

2,391

9,684

2,392

1,899

1,939

2,173

8,403

Propylene produced

805

740

697

798

3,040

832

748

575

660

2,815

Polyethylene sold

1,473

1,575

1,577

1,578

6,203

1,554

1,426

1,517

1,485

5,982

Polypropylene sold

627

698

662

606

2,593

612

582

659

623

2,476

Benchmark Market Prices

West Texas Intermediate crude oil (USD per barrel)

48.57

57.95

45.36

42.16

48.71

33.63

46.01

44.94

49.29

43.56

Light Louisiana Sweet ("LLS") crude oil (USD per barrel)

52.84

62.93

50.20

43.53

52.36

35.34

47.39

46.52

50.60

45.03

Houston Ship Channel natural gas (USD per million BTUs)

2.76

2.76

2.72

2.11

2.57

1.93

2.06

2.79

3.01

2.45

U.S. weighted average cost of ethylene production (cents/pound)

10.2

9.7

9.6

10.9

10.1

9.8

12.0

10.6

14.3

11.7

U.S. ethylene (cents/pound)

34.8

34.2

30.3

27.5

31.7

26.7

30.3

33.0

32.7

30.7

U.S. polyethylene [high density] (cents/pound)

65.7

67.3

64.3

57.0

63.6

52.3

59.0

60.7

58.3

57.6

U.S. propylene (cents/pound)

49.7

41.7

33.2

31.3

39.0

31.0

32.7

37.8

36.2

34.4

U.S. polypropylene [homopolymer] (cents/pound)

67.7

61.7

59.3

62.7

62.8

67.8

61.7

60.2

55.8

61.4

Olefins and Polyolefins - Europe, Asia, International

Volumes (million pounds)

Ethylene produced

1,007

1,047

944

978

3,976

950

941

1,066

946

3,903

Propylene produced

600

632

575

575

2,382

555

577

649

563

2,344

Polyethylene sold

1,533

1,360

1,304

1,379

5,576

1,434

1,386

1,315

1,330

5,465

Polypropylene sold

1,817

1,529

1,673

1,757

6,776

1,773

1,617

1,509

1,582

6,481

Benchmark Market Prices (€0.01 per pound)

Western Europe weighted average cost of ethylene production

22.9

23.2

14.4

22.5

20.8

16.3

21.2

17.9

23.8

19.8

Western Europe ethylene

39.3

47.1

46.6

41.4

43.6

38.4

41.1

42.3

43.1

41.2

Western Europe polyethylene [high density]

45.2

60.6

61.2

56.9

56.0

55.4

57.6

55.7

55.2

56.0

Western Europe propylene

37.1

44.4

41.7

31.0

38.5

26.3

28.8

30.7

33.3

29.8

Western Europe polypropylene [homopolymer]

49.8

62.5

59.3

47.4

54.7

46.5

49.5

49.5

51.7

49.3

Intermediates and Derivatives

Volumes (million pounds)

Propylene oxide and derivatives

870

751

697

682

3,000

793

743

752

749

3,037

Intermediate Chemicals:

Ethylene oxide and derivatives

268

312

282

237

1,099

301

233

224

329

1,087

Styrene monomer

903

735

904

889

3,431

917

933

911

933

3,694

Acetyls

547

810

733

623

2,713

702

821

751

776

3,050

Oxyfuels and Related Products:

TBA Intermediates

433

321

421

371

1,546

415

391

410

361

1,577

Volumes (million gallons)

MTBE/ETBE

229

299

268

258

1,054

270

278

298

264

1,110

Benchmark Market Margins (cents per gallon)

MTBE - Northwest Europe

64.0

106.0

119.0

49.8

85.1

44.4

78.7

55.3

50.6

57.2

Refining

Volumes (thousands of barrels per day)

Heavy crude oil processing rate

241

255

249

206

238

186

183

209

228

201

Benchmark Market Margins

Light crude oil - 2-1-1

15.02

16.42

15.29

9.44

14.04

8.67

11.52

11.46

11.20

10.73

Light crude oil - Maya differential

8.72

7.56

7.48

9.11

8.26

9.19

9.55

7.52

7.80

8.51

Source: LYB and third party consultants

Note: Benchmark market prices for U.S. and Western Europe polyethylene and polypropylene reflect discounted prices. Volumes presented represent third party sales of selected key products.

Table 10 - Unaudited Income Statement Information

2015

2016

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

Total

Sales and other operating revenues

$

8,185

$

9,145

$

8,334

$

7,071

$

32,735

$

6,743

$

7,328

$

7,365

$

7,747

$

29,183

Cost of sales(a)

6,379

7,047

6,465

5,792

25,683

5,166

5,702

5,903

6,420

23,191

Selling, general and administrative expenses

205

228

194

201

828

193

199

188

253

833

Research and development expenses

26

25

25

26

102

24

24

25

26

99

Operating income(a)

1,575

1,845

1,650

1,052

6,122

1,360

1,403

1,249

1,048

5,060

Income from equity investments

69

90

93

87

339

91

117

81

78

367

Interest expense, net

(58)

(72)

(77)

(70)

(277)

(77)

(79)

(68)

(81)

(305)

Other income (expense), net(b)

21

4

10

(10)

25

88

(3)

19

7

111

Income from continuing operations before income taxes(a) (b)

1,607

1,867

1,676

1,059

6,209

1,462

1,438

1,281

1,052

5,233

Provision for income taxes

440

541

487

262

1,730

432

346

326

282

1,386

Income from continuing operations(c)

1,167

1,326

1,189

797

4,479

1,030

1,092

955

770

3,847

Income (loss) from discontinued operations, net of tax

(3)

3

(3)

(2)

(5)

- -

(1)

(2)

(7)

(10)

Net income(c)

1,164

1,329

1,186

795

4,474

1,030

1,091

953

763

3,837

Net (income) loss attributable to non-controlling interests

2

1

(1)

- -

2

- -

- -

(1)

- -

(1)

Net income attributable to the Company shareholders(c)

$

1,166

$

1,330

$

1,185

$

795

$

4,476

$

1,030

$

1,091

$

952

$

763

$

3,836

(a)

Amounts presented herein include pre-tax LCM charges of $92 million, $181 million and $284 million for the first, third and fourth quarters of 2015, respectively. The second quarter of 2015 includes a pre-tax LCM benefit of $9 million for the partial reversal of the first quarter 2015 LCM adjustment. The first and fourth quarters of 2016 include pre-tax LCM charges of $68 million and $29 million, respectively. Second quarter 2016 EBITDA includes a pre-tax LCM benefit of $68 million for the reversal of the first quarter 2016 LCM adjustment due to price recoveries during the period.

(b)

Includes a pre-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary in the second quarter of 2016.

(c)

Amounts presented herein include after-tax LCM charges of $58 million, $114 million and $185 million in the first, third and fourth quarters of 2015, respectively. The second quarter of 2015 includes an after-tax benefit of $6 million for the partial reversal of the first quarter 2015 LCM adjustment resulting from price recoveries during the period. The first and fourth quarters of 2016 include after-tax LCM charges of $47 million and $18 million, respectively, and an after-tax gain of $78 million on the sale of our wholly owned Argentine subsidiary. Second quarter 2016 EBITDA includes an after tax LCM benefit of $47 million for the reversal of the first quarter 2016 LCM adjustment.

Table 11 - Charges (Benefits) Included in Income from Continuing Operations

2015

2016

Millions of U.S. dollars (except share data)

Q1

Q2

Q3

Q4

AnnualImpact

Q1

Q2

Q3

Q4

AnnualImpact

Pretax charges (benefits):

Out of period tax adjustment

$

- -

$

- -

$

- -

$

- -

$

- -

$

- -

$

- -

$

- -

$

61

$

74

Gain on sale of wholly owned subsidiary

- -

- -

- -

- -

- -

(78)

- -

- -

- -

(78)

Lower of cost or market inventory adjustment

92

(9)

181

284

548

68

(68)

- -

29

29

Pension settlement charge

- -

- -

- -

- -

- -

- -

- -

- -

58

58

Emission allowance credits, amortization

35

- -

- -

- -

35

- -

- -

- -

- -

- -

Total pretax charges (benefits)

127

(9)

181

284

583

(10)

(68)

- -

148

83

Provision for (benefit from) income tax related to these items

(47)

3

(67)

(99)

(210)

(21)

21

- -

(32)

(32)

After-tax effect of net charges (benefits)

$

80

$

(6)

$

114

$

185

$

373

$

(31)

$

(47)

$

- -

$

116

$

51

Effect on diluted earnings per share

$

(0.17)

$

0.02

$

(0.25)

$

(0.42)

$

(0.80)

$

0.07

$

0.11

$

- -

$

(0.29)

$

(0.12)

Table 12 - Unaudited Cash Flow Information

2015

2016

(Millions of U.S. dollars)

Q1

Q2

Q3

Q4

Total

Q1

Q2

Q3

Q4

Total

Net cash provided by operating activities

$

1,468

$

1,446

$

1,768

$

1,160

$

5,842

$

1,300

$

1,261

$

1,332

$

1,713

$

5,606

Net cash provided by (used in) investing activities

(443)

(727)

67

52

(1,051)

(597)

(471)

(459)

(770)

(2,297)

Net cash used in financing activities

(401)

(1,021)

(1,684)

(1,744)

(4,850)

(333)

(1,039)

(1,195)

(782)

(3,349)

Table 13 - Unaudited Balance Sheet Information

March 31,

June 30,

September 30,

December 31,

March 31,

June 30,

September 30,

December 31,

(Millions of U.S. dollars)

2015

2015

2015

2015

2016

2016

2016

2016

Cash and cash equivalents

$

1,616

$

1,325

$

1,474

$

924

$

1,318

$

1,060

$

740

$

875

Restricted cash

2

3

1

7

4

4

4

3

Short-term investments

1,478

1,989

1,602

1,064

1,332

1,023

1,090

1,147

Accounts receivable, net

3,089

3,373

2,924

2,517

2,683

2,806

2,852

2,842

Inventories

4,267

4,179

4,138

4,051

3,978

4,009

4,015

3,809

Prepaid expenses and other current assets(a)

1,195

1,121

1,059

1,226

1,009

1,081

852

923

Total current assets

11,647

11,990

11,198

9,789

10,324

9,983

9,553

9,599

Property, plant and equipment, net

8,430

8,636

8,793

8,991

9,373

9,681

10,057

10,137

Investments and long-term receivables:

Investment in PO joint ventures

373

357

357

397

398

390

399

415

Equity investments

1,581

1,612

1,602

1,608

1,734

1,610

1,681

1,575

Other investments and long-term receivables

38

126

125

122

18

18

17

20

Goodwill

533

543

543

536

548

542

543

528

Intangible assets, net

695

671

644

640

618

588

562

550

Other assets(a)

637

600

605

674

559

623

607

618

Total assets

$

23,934

$

24,535

$

23,867

$

22,757

$

23,572

$

23,435

$

23,419

$

23,442

Current maturities of long-term debt

$

4

$

3

$

3

$

4

$

4

$

4

$

3

$

2

Short-term debt

514

582

573

353

594

616

621

594

Accounts payable

2,631

2,755

2,450

2,182

2,243

2,357

2,329

2,529

Accrued liabilities

1,482

1,455

1,784

1,810

1,600

1,374

1,357

1,415

Deferred income taxes(a)

429

434

383

- -

- -

- -

- -

- -

Total current liabilities

5,060

5,229

5,193

4,349

4,441

4,351

4,310

4,540

Long-term debt

7,677

7,658

7,674

7,671

8,504

8,485

8,464

8,385

Other liabilities

2,038

2,063

2,044

2,036

2,125

2,143

2,151

2,113

Deferred income taxes(a)

1,653

1,635

1,604

2,127

2,134

2,149

2,387

2,331

Stockholders' equity

7,478

7,927

7,328

6,550

6,344

6,283

6,082

6,048

Non-controlling interests

28

23

24

24

24

24

25

25

Total liabilities and stockholders' equity

$

23,934

$

24,535

$

23,867

$

22,757

$

23,572

$

23,435

$

23,419

$

23,442

(a)

Our prospective adoption of ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, in December 2015 resulted in the classification of our deferred taxes as of December 2015 as noncurrent.